Critics ramp up pressure over Mayor Lurie’s $643M budget cuts

Mayor Daniel Lurie’s budget fight in San Francisco has moved into a more public phase, with labor unions, clinic workers and some supervisors challenging cuts tied to a projected $642.8 million two-year General Fund shortfall. The city’s March 31 budget outlook said the deficit for fiscal years 2026-27 and 2027-28 would require “significant actions” before the June 1 budget deadline. Lurie’s office released a May 1 preliminary budget covering 13 departments and four enterprise agencies, with a full proposed budget due June 1. Unions say the administration has paired the budget push with layoffs, position freezes and proposed service reductions. ### Where does the $643 million figure come from? San Francisco’s March 31 five-year budget update projected a $642.8 million General Fund shortfall across the two fiscal years the city must balance together, 2026-27 and 2027-28. The same report said the single-year shortfall for 2026-27 was $168.5 million and that longer-term structural deficits were still projected to exceed $1 billion by 2029-30. (media.api.sf.gov) The Controller, the Mayor’s budget office and the Board of Supervisors’ budget analyst jointly issued that projection. Their report said $306.3 million of the two-year gap was tied to state and federal funding changes stemming from H.R.1, accounting for just under half of the total shortfall. ### What has Lurie actually put on the table so far? Lurie’s May 1 budget document described itself as the first step toward a balanced budget for fiscal years 2026-27 and 2027-28. (media.api.sf.gov) The document said it funds 13 city departments, including the Municipal Transportation Agency, San Francisco International Airport, the Port and the Public Utilities Commission, and that it would be followed by a full proposed budget on June 1. The mayor’s office has not framed the current round as only a one-year problem. The March outlook said the city still faces a structural imbalance even after an improved forecast from December, and Lurie’s office has said the budget process is aimed at closing gaps while preserving core services. ### Why are unions treating this as more than a bookkeeping dispute? (sf.gov) SEIU 1021 said Lurie’s administration issued layoff notices in April and froze thousands of positions, while IFPTE Local 21 President Bianca Polovina said city workers were seeking “fair solutions” that do not cut staff and programs residents rely on. SEIU 1021 said 62 of its members across 12 departments received notices and said the mayor remained committed to eliminating 500 positions citywide. (media.api.sf.gov) Clinic workers have tied the broader budget fight to specific services. KTVU reported that staff at three community clinics serving youth and seniors said proposed cuts could force closures, while KQED reported that advocates were raising concerns about homeless-service funding as the city narrowed the deficit. ### Are elected officials lining up against more cuts? Supervisor Connie Chan, who chairs the Board of Supervisors budget process, said on her fiscal year 2026-27 budget page that public budget conversations began in May and that she had already sent budget priorities to Lurie’s office. (seiu1021.org) Her posted principles included cutting vacant management positions before reducing frontline workers, reducing administrative costs and preserving oversight capacity. (ktvu.com) Mission Local reported on May 12 that Chan said she would find it “very difficult” to support additional cuts. That stance matters because the Board of Supervisors amends and approves the mayor’s proposed budget after hearings and committee review. ### What happens next in the budget process? The Board of Supervisors’ Budget and Appropriations Committee is already meeting on a weekly schedule, with sessions listed for May 13 and May 20. (sf.gov) SF.gov says the committee convenes between February 1 and August 1 each year, and the board’s public portal posts agendas, hearing materials and legislation tied to the budget. June 1 is the next major date. (missionlocal.org) Lurie’s May 1 document says his full proposed budget will be released that day, after which the Board of Supervisors will continue hearings, amendments and final votes on the city’s spending plan for fiscal years 2026-27 and 2027-28. (sf.gov) (sf.gov)